Executive Summary
This report details a proposed business plan for Golden Events, an event planning and management company. The firm’s chief goal is to help residential and corporate communities organize, schedule, and manage events. The report first offers a succinct description of the proposed enterprise by outlining the fundamental aspects and nature. Secondly, an industrial evaluation is provided to elucidate the current market situation in the broad events sector. A marketing plan follows that illustrates the promotional models that the company intends to employ in attracting and retaining customers. Further, an operating plan is provided to explicate the essential approaches that will be applied in running daily undertakings. Lastly, the report outlines a human resource assessment, encapsulating the various employees and managers that will help actualize the business’s short-term and long-term objectives.
Business Plan
Business Description
Today’s fast-paced world leaves little or no time for activities like planning parties, social gatherings, or events. The demand for planning services can only increase, seeing the rise in incomes and the necessity for interpersonal relationships. Golden Events will be a licensed event planning business located in the Brooklyn borough of New York City. The objective is to help the residential and corporate community in Brooklyn by providing the best and outstanding services for their events. Golden Events will be operated and owned by Goldlyn, who has a passion for events and has worked in the hospitality industry for a while.
Industrial Analysis
Market Structure
The events industry market was valued at $1.31 trillion in 2019 and is expected to rise to $3.61 trillion by 2028, recording a CAGR score of 37.2% in the predicted period (Allied Market Research, 2021). The events sector is a growing market expected to develop from the industry revenue in the coming years. The industry is undergoing unmatched progress of more than 25% per annum, making it one of the fastest-growing industries alongside the travel and hospitality sectors (Allied Market Research, 2021). The events sector covers corporations and people who organize events ranging from weddings to parties and corporate events to music actions. The industry players collect various necessities such as venue booking, food, videography, and photography, among other services. Though the industry revenue is expected to slow down considerably in the next one or two years due to the impact of Covid-19, event planning is still in demand events are still being held, most specifically corporate occasions.
A crucial Covid 19 effect analysis is outlined below:
- The events sector is intensely jammed due to the virus owing to curfew restrictions and lockdowns.
- Virtual events have garnered high appeal in the previous year; consequently, industry participants are operating in the digital space.
- The duration of Covid 19 remains a primary factor in evaluating the overall impact on the events industry; however, the industry will still stabilize after 2020.
Current and Future Trends in the Industry
The industry is among the few that have experienced constant revenue with time. Industry statistics show that the events industry contributes over a hundred billion dollars to the yearly GDP of the country (Park & Park, 2017). Further, the number of event planners has grown tremendously in recent years (Park & Park, 2017). The use of alternative venues is also increasing to interest more attendees and build memorable experiences. The revolutionary technological innovations such as virtual reality and artificial intelligence enable planners to meet the needs of attendees.
Evolution in technology will initiate the development of hybrid events. Events will use technology to build openings for attendees to share beautiful experiences despite their location in the world. Safety will be a significant worry for the probable future of events. It will also be a key concern for participants’ decisions about whether or not they will attend the event (Park & Park, 2017). Though nothing can guarantee and fully ease the threat of attendance, numerous precautions can be taken to avoid the spread of the virus.
Fundamental Driving Forces and Success Factors
The universal gatherings and events sector is on the rise in all states of the world. This outcome is influenced by external factors and driving forces that influence the demand for event planning services. Companies and individuals are identifying the essentiality of meetings and events. Additionally, the increasing use of digital communications such as social media simplifies face-to-face gatherings, networking, and meaningful conversations. Such factors are driving an anticipated increase in size, length, and budget for events. The right participants and the right message will provide positive success for the events planning business. After identifying the market structure, the industry trends, and the driving forces, it is apparent that the events planning sector is always booming and can be hugely lucrative and successful provided the business has proper planning.
Target Market Covering
Market Segment
The target market comprises the corporate sector located in Brooklyn and the residential community living nearby. The residential community is comprised of individuals from various backgrounds. Their incomes range from $30,000 to $50,000 per month, while 10% to 15% of the residents have a monthly income of $100,000. Brooklyn houses several local, national, and multinational companies, which will provide many business opportunities (Park & Park, 2017). These companies make millions of dollars per year and spend generously on events to promote their brands. Golden Events has identified the following target consumers: potential customers, the corporate sector, government organizations, and the residential community. Figure 1 shows the market division of the target audience.
Corporate Sector
The corporate industry located in downtown Brooklyn will be the largest consumer of our services. These companies and businesses are located within a 13km radius of the business’ location. The companies arrange company retreats and team buildings once or twice a year. Equally, corporations need to plan work sessions, seminars, conferences, workshops, and team meetings several times a year, which will drive event planning. Additionally, the companies kick back millions of dollars each year and spend lavishly on their occasions. Their purchase decisions and motives are based on promoting the businesses and entertaining their prominent guests. The anticipated largest portion of the revenue will be derived from the corporate sector, requiring a considerable focus on the marketing strategy.
Government Organizations
The government institutions category comprises organizations such as schools, hospitals, and media organizations. These organizations regularly host numerous open gatherings and events such as seminars and conferences. Such institutions have available funds set aside for events that must be planned.
Residential Community
This class is made up of individuals located and living near the location of Golden Events. The residential community will require our services for weddings, festivities, birthdays, and anniversaries. The residents have monthly disposable incomes and are ready to indulge in events and special gatherings. This class of customers will be the second-highest contribution to our revenue after the corporate industry.
Market Size and Sales Forecast
The market size of the events planning business valued by revenue is AUD4.9 billion as of 2021. The company’s sales outcome is expected to grow as we progress, Considering our innovative gear, excellence of our services, and unmatched client service (Park & Park, 2017). During the initial stages, the company will leverage the already existing business relationships formed by the company. The first two months will be dedicated to setting up the office location. Therefore, it is doubtful that there will be any sales within this period. Sales should start coming in from the third month. However, it is estimated that the business sales should take shape from the fifth month. From the sixth month to the twelfth month, sales should progressively upsurge and endure throughout the second year. Figure 2 shows the forecasted sales for the first three years.
Marketing Plan
Value Proposition
The events will be fully customized, representing our client’s brand personality. Our services will incorporate state-of-the-art designs that will include wines, cocktails, music, and the immaterial portion of surprise. Golden Events will be responsible for managing, planning, and executing ideas to make events successful. We are very detail-oriented, which is one of our unique selling points. The company’s experienced professionals appreciate that revolutionary designs are only as decent as the restraint supporting them. There is a beautiful connection between specialty in logistics and the conception of surprise. The intention is to plan and manage every event from formation to execution.
Pricing and Expected Margins
While coming up with service prices can be challenging, a pricing plan is essential in every event planning business strategy. Though one has to attract clients and yield profit simultaneously, it is challenging to archive these two, especially in the start-up stages. The only way to succeed is by having a conceded trade-off or stabilizing the two concepts. Golden Events will price its services at the current market prices. The intention is to attain the lowest attractive rate of return.
Marketing and Distribution Strategy
After the market analysis, a marketing strategy is essential to the success of any events planning business. After identifying the ideal customer profiles, the following stage will develop a method of attracting customers. Getting social on social media is on top of our long-term marketing policy. Further, networking is a strategy that we will employ to create relationships and promote referrals. The company will have an official website that will help in promoting the business on search engines. The website will also be the fundamental core for housing information about our events and services. Golden Events will partner with companies whose clients require our services to deliver services to the target audience for our distribution strategy. This way, the marketing costs will be reduced, and services will reach potential customers.
Customer Relationship Models
Golden Events will employ an automated service customer relationship model. This type of customer relationship model combines an extra refined form of client self-service with computerized procedures. For instance, individual online profiles present consumers with access to personalized services. An automated model can identify specific clients and their features and provide information concerning transactions and orders. Further, autopilot services can inspire a personal relationship with prospects. Additionally, the company will integrate online communities into its customer relationship model. Consequently, the company will be more involved with clients to facilitate connections and better understand customer needs.
Operations Plan
Location and Facilities
Golden Events’ main office will be located in the Brooklyn borough of New York City. A 250 Square feet workplace has been attained on lease in the central location of the Brooklyn commercial area. The estimated cost of leasing the business premises is $25,000. Brooklyn is a fast passed business environment that is suitable for the success of every business. The location is made up of varying target consumers who make it possible for this type of business. Table 1 shows the detailed start-up facilities as estimated by experts.
Table 1. Key Start-Up Facilities.
A facility maintenance process involves setting up standard operating procedures for reporting facility issues. Measures for collecting, analyzing, and presenting data will be put in place to ensure smooth decision-making. The company will provide a constant update to electronic use policies for better protection. Privacy of intellectual property will be our top priority. We will monitor trademarked use of the internet because the courts can consistently hold that illegal.
Information Management System and CRM
While having an accountant who organizes monthly statements and reports is essential, an information management system is vital for the success of every business. Am information management system will be used to identify and collect critical metrics and data about the company’s operations and provide reports that will enable the business to keep its goals on track. This system will help identify what is working and what is not to improve performance and decision-making.
Customer relationship management is essential to the realization of any business. The top vital way to maintain customer satisfaction is having a strategy for improving customer relations. The goal is to employ customer relationship management (CRM) software that focuses on mining customer allied information and creating client behavior models. The business will take advantage of the benefits of a customer relationship management model by collecting and analyzing data from various sources. Golden Events will focus on the Behavioural CRM model to gather information about clients’ consumption patterns and what motivates customer conduct. An analytical CRM model will be utilized for record-keeping and communication purposes.
The information gathered from a CRM model will facilitate personalized sales and promotions to specific buyer groups. This strategy will, in turn, grow our customer relations and keep them coming back. Additionally, the business will implement cross-selling, which encompasses proposing complementary services to customers. This plan will necessitate increased revenue and supports a personal association with clients. More importantly, the model will provide an avenue for customer feedback to help the business forestall consumer needs.
Operation Process
Figure 3 illustrates the proposed operation process for Golden Events.
The figure above shows the operations process flow chart. Proper communication will be established to ensure that all stages of the process are handled effectively. While outsourcing is usually viewed as a risky venture, the threat usually depends on the nature of operations outsourced. Subcontracting the core business processes is generally more dangerous because the owners will have limited control of operations. The business will contract tax advisors, Human Resource professionals, caterers, and security services periodically or as the need arises.
The decision to outsource some of our business operations is based on several factors. Outsourcing will help the business by minimizing operational costs. A tax advisor will be contracted based on reputation because taxes are a crucial part of any business.
The materials required for the business to operate include an AV machine, stationery, makeup Kit, balloons and camera, and caterers. The firm will use the following criteria to find the right vendors for equipment and supplies. First, value for money is a crucial consideration because the company is a start-up. Also, the quality of supplies needs to be consistent and up to standard. The company will need flexible suppliers who will enable quick response to the ever-changing client needs and emergencies. The financial stability of our supplies is essential to determine whether the supplier can deliver.
Legal Issues
Golden Events recognizes its responsibility concerning the legal and regulatory frameworks of an event planning business. Premise licenses are usually required when setting up events in particular locations. A procedure for obtaining that document has been laid down. We will bring a health and safety permit from the relevant authorities. Risk and safety assessment measures will be included during any event planning now more than ever due to Covid-19. Every planning service will be accompanied by a contract that will consist of policies such as cancellation procedures and particular clauses in case of any fallout. Commercial general liability insurance will be secured to protect the business in cases of accidents. Though the company is a start-up, taxes are a significant part of the process. A tax advisor will be hired in the early stages of the business to review tax probable tax pitfalls and recommend appropriate proper setup with the government.
Human Resource Plan
The success of every business depends on employees; therefore, a personnel strategy will be created. Still, it is not easy to assess the digit and nature of personnel required for a corporation before its launch. The help of a human resource professional will be contracted. A human resource expert will be acquired to help in developing a staffing plan for the company. Goldlyn will handle the inclusive procedures of the Golden Events. She will perform as the CEO and general manager of the corporation. Consequently, the company will hire various employees in the start-up phase, as indicated in Table 2 below. Moreover, the success of the company will largely depend on the staff management procedure.
Table 2. Staffing Structure
To confirm the competence of our staff, all employees will undergo screening and evaluation for credibility. All personnel will be recruited through a vital testing process and will undergo training before they start working.
References
Allied Market Research. (2021). Events Industry Size, Share & Trends | Analysis Forecast, 2021-2028. Web.
Park, S. B., & Park, K. (2017). Thematic trends in event management research. International Journal of Contemporary Hospitality Management, 29(3), 848-861. Web.